C&T market growth in US lowest since 1991, says Kline

According to research and consulting firm Kline & Company, the C&T market in the US grew just 0.3% in 2008, the sector’s least dynamic growth since 1991. While the new data also indicates that sales have reached $35.6bn at manufacturers’ level, consumer concerns about the recession could mean these levels remain static during 2009 to 2010.

The luxury, speciality and salon markets were hit particularly hard as the economic downturn encourages consumers to budget, said Kline. Conversely, mass and direct trade were the fastest growing segments.

Nancy Mills, industry manager, consumer products practice at Kline, stated that the situation looked likely to continue into the “foreseeable future” commenting: “many people have traded down on certain products, and as they get accustomed to buying some lower-priced or private label products and shop more in lower priced channels, they might well continue with those habits after the tough times have subsided.”

The fastest growing product sector was oral care, followed by skin care – also the largest product sector.

The next five years, says Kline, will see moderate growth in the US C&T market, although 2009 to 2010 will be slow. Growth will be affected negatively be strict legislation on claims and ingredients while product innovations, and alliances and mergers will impact it positively.